CIPS Exam Report for Learner Community:

Qualification: Professional diploma in procurement and supply

Unit: PD1 - Leadership in P&S
Exam series: November 2014

Question 1 Learning Outcome 1.1

Explain, using examples from the case study and appropriate theory, the main differences
between leadership and management. (25 marks)
Analysis of the Question:
This question required the candidates to identify the main differences between leadership and management,
using appropriate theories to support the answer. It tested the candidates knowledge and understanding of
what is leadership and management and how they differentiated from each other.
Answers might include a brief initial explanation of the terms leadership and management.

The differences identified by theory can be taken from a range of sources including Kotter who explained the
following differences. Management is regarded as including the following activities:
Planning and budgeting.
Target setting.
Establishing procedures and processes.
Allocating resources to meet plans.
Organising and staffing.
Designing staff structures.
Allocating tasks.
Establishing rewards and incentives.
Problem solving and controlling monitoring results.

Pioneers such as Taylor and Fayol may be related to 'management' in this context.
Leadership however can be distinguished by the following activities:
Creating a sense of direction.
Communicating the vision.
Energising and inspiring.
Motivating and stimulating others to translate vision into action.

Leadership is about creating and coping with change and is differentiated from management which
concentrates on process and maintenance of the status quo.
There are a range of examples from the case study where Katrina Woost has demonstrated both of the above
activities; however the majority of the case study refers to her as a leader.

This is exemplified by her being:

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 A catalyst for change across the organisation (paragraph 2).
Adopting a wide range of influencing skills (paragraph 3).
Being fundamental to organisational and cultural change (paragraph 4).
Being innovative and solving problems (paragraph 5).
Being emotionally engaged with other people (paragraph 5).
Adopting new policies (equality and diversity) (paragraph 7).

There are a range of other theories that may be applied to explain the difference between leadership and
management including for example:
Yukl managers have subordinates, leaders have followers.
Meredith Belbin over and above what is contained within the job comes about through the exercise of
leadership qualities and skills.
Zaleznic managers are concerned with order, leaders are concerned with new ideas, excitement and vision.
Katz & Kahn managers secure compliance, leaders secure enthusiasm and commitment.

Candidates are not expected to provide a detailed theoretical analysis, however some reference to
appropriate theory is a requirement of the question.

Candidates may also comment that some authors (Whetten & Cameron) suggest the distinction between
leaders and managers is no longer valid as both skills are required to be successful. Mullins expresses similar
views.

Analysis of the Answer:

Most of the candidates did not use the appropriate theories. It was evident that a high number of candidates
relied on leadership traits and styles to answer this question. Most candidates referred to leadership style
models such as Blake and Mouton and Hersey and Blanchard etc. However, a number of candidates did try
and fit these models to demonstrate the differences. Some marks were awarded for those answers that
provided an explanation which demonstrated a clear difference such as soft skills as opposed to hard skills.
Stronger answers did provide appropriate theories such as Kotter, Yuki and Zaleznic etc and related these
theories to the case study as well as supportive practical evidence of how Katrinas related to others.
However, poor answers did not focus on the question asked and tended to provide a lengthy discussion on
either definition of leadership and/or an explanation of the different traits and styles such as autocratic,
democratic tell etc.
Exam Question Summary:
Candidates must understand the requirements needed to effectively answer the question to gain a pass at
this level. A reminder that candidates must understand the broader base of leadership extends beyond traits
and styles. It was quite evident that a high number of candidates did not have a strong understanding of
leadership and management differentiation theories. .
It was also noticeable that a number of candidates chose to answer this question last. This question should be
regarded as a core question. Candidates need to read the question carefully and answer what is required.

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Question 2 Learning Outcome 2.2

One technique that Katrina could use as part of her leadership of the procurement team is
the use of key performance indicators (KPIs).
Explain, in the context of examples developed from the case study, FIVE characteristics or
(25 marks)
features of effective KPIs that Katrina could establish for the procurement team.
Analysis of the Question:
In this question candidates were expected to identify and explain FIVE characteristics or features of a key
performance indicator/s (KPIs). It was expected that candidates would use the acronym SMART or SMARTER.
A pass grade answer would include but not limited to the following content:
Answers might include a brief explanation of the term KPIs which are clear, qualitative or quantitative
statements which define adequate or desired performance in key areas. They measure progress and
performance towards objectives. The characteristics or features of effective KPIs can be addressed using the
acronym SMART or SMARTER.
Candidates may also refer to management by objectives (MbO) although this is slightly dated but does
provide an alternative framework for the setting of objectives and KPIs.
In the context of the case study, examples of SMART objectives that Katrina could set would be as follows:
Specific the objective must be clear and well defined e.g. a 5% reduction in the cost of services and
materials for CareHelp in the next 12 months.
Measureable the objective must be capable of being monitored and reviewed e.g. from checking
suppliers invoices, reductions in costs would be identified.
Attainable the objective must be realistic in the timeframe and with the resources available e.g. a 5%
reduction as outlined above may be attainable whereas a 50% reduction would not.
Relevant the objective must be relevant to the organisational context. Therefore a reduction in
purchase costs for CareHelp would be relevant whereas measurement of the daily rainfall may not be
appropriate as a measure of performance for purchasing.
Time-bound the objective should give clear timescales and deadlines for its completion e.g. from the
example above 12 months provides the relevant timeframe.

Candidates may provide a wide range of potential examples from the case study all of which, provided they
meet the criteria above, would be accepted as valid.
Some authors have proposed modifications to the above acronym either amending or adding to the basic
SMART or SMARTER framework such as detailed below:
Stretching setting challenging targets.
Sustainable considering the impact on stakeholders.
Agreed incorporated into a contract or agreement to ensure accountability.
Rewarded achievement of KPI linked to positive incentive.
Reviewed KPIs should be monitored and updated as appropriate.
There are a range of examples that could be cited and a number of alternative frameworks for setting
effective KPIs. All of these should be accepted where valid. Candidates may be tempted to just list and
comment on FIVE KPI's. This in itself would not warrant any marks unless the candidate has referred to
general characteristics or features within the context of each such as cost saving (implies a quantifiable term).
In these instances no more than a bare pass would be awarded.

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Analysis of the Answer:
A high number of candidates gave an explanation of FIVE actual KPIs with no direct reference to
SMART characteristics or any other appropriate framework. Although this in itself would not warrant
any marks, answers which referred to general characteristics or features within the context of each
KPI, such as, cost saving (implying a quantifiable term) would be marked accordingly and would only
warrant up to a bare pass. Candidates who did not provided any of the FIVE characteristics or
features, but did provide a clear explanation of the term KPIs, would be awarded some marks but
would not warrant a pass.
Stronger answers used the SMART or SMARTER acronym supported by a good explanation of each
characteristic in the context of the case study e.g. Specific the objective must be clear and well
defined e.g. a 5% reduction in the cost of services and materials for CareHelp in the next 12 months.
Stronger answers also included SMART/SMARTER with modifications such as stretching, rewarding
etc.

Exam Question Summary:

The structure of the question was clear enough to answer appropriately using SMART or SMARTER
acronym. Again, during the transfer of knowledge, emphasis must be on the characteristics or
features of KPIs. Even though this should be regarded as a straightforward question many
candidates struggled with the definition of characteristics and how this related to KPIs. Marking
should have been straightforward but because of the nature of the answers assessors had to look for
the evidence of partial understanding. Again this is a level 6 qualification and at this level the
candidates must have the ability to decipher the needs of the question.
Candidates who understood and applied the requirements to the case study of this question did well and
were accredited accordingly.

Question 3 Learning Outcome 3.3

Analyse the potential benefits for CareHelp in adopting an equality and diversity policy and
programme both within the organisation and for its external supply chain. (25 marks)
Analysis of the Question:
Candidates were expected to identify and explain a range of potential benefits for CareHelp in adopting
equality and diversity policy and programme. The candidates needed to analyse the internal environment
and also the external supply chain environment of CareHelp.
Answers might include a brief explanation of the terms equality and diversity in the context of the case study
scenario.
Equality and diversity may be defined as:
Equality is the principle that people should be treated fairly and without bias or discrimination. It particularly
relates to the equal rights of minorities, under-represented groups in society and the workplace.
Diversity is the visible and non-visible differences which include sexual orientation, gender, and age,
background, and race, disability, personality and work style.

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It is likely that harnessing these differences will create a productive environment in which everyone feels
valued.
Benefits that may be claimed for an organisation such as CareHelp of a positive approach to equality and
diversity are likely to be extensive.
Candidates should recognise the two aspects of the question, internal and external benefits.
Detailed below are some examples although this is not an exclusive list:
Widening the recruitment pool.
Performance benefits due to wider range of skills, experience and viewpoints.
Reflecting the diversity of external stakeholders customers may identify with gender, age or race
characteristics similar to their own if they are present in the organisation.
Benefits for staff morale and performance.
Enhanced customer satisfaction and loyalty.
Enhanced employer brand.
Compliance with equal opportunities legislation and the avoidance of negative PR.
Enhanced flexibility and learning.
The benefits of diversity may be summarised as legal, moral, social, business and employee based.
Equal opportunities and equality cover areas such as avoidance of discrimination, harassment and
victimisation.
The benefits that CareHelp may gain in terms of their external supply chain relate to areas such as:
Widening and developing new supply markets.
Developing sourcing policies and practices that do not discriminate. E.g. the aggregation of large
orders may mitigate against small suppliers (SMEs).
Addressing the frustration of suppliers who are unaware of forthcoming contracts.
Ensuring that ethical issues are addressed in tendering without manipulation and intimidation of
suppliers.
There are a very wide range of potential benefits for CareHelp both internally applied to the individual
employees and staff and externally with its supply chain.
All of these benefits, where suitably justified, will be rewarded.

Analysis of the Answer:

A good well-constructed question to test candidates knowledge of equality and diversity awareness within an
organisation. This question was generally much better answered than questions 1 and 2, with many
candidates achieving higher than a bare pass mark. The vast majority of answers were able to demonstrate
an understanding of Equality and Diversity and why they are so important to the organisation. Again most
answers looked to specifically consider the potential benefits for both internal and external stakeholders.
Stronger answers were able to contextually integrate the benefits to the case study. Whilst the question
clearly states benefits, several candidates used their exam time to consider any disadvantages such as cost
and resource issues etc. This was a shear waste of valuable exam time and candidates must read the question
and answer appropriately. A number of answers just listed with limited explanation. These were regarded as
superficial by not providing sufficient evidence of understanding.

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Exam Question Summary:
An excellent opportunity to gain high marks for such a straightforward question. The majority of the
candidates answered the question reasonably well with many also providing a good contextualised
explanation. AGAIN, from the evidence provided, it would seem that there is a weakness in a number of
candidates in terms of just listing answers when the opportunity arises with particular questions. The
question specifically asked for benefits and yet many candidates provided discussion on disadvantages or the
negative aspects of equality and diversity. Again it is essential that candidates read the questions carefully.
Question 4 Learning Outcome 4.3

Some procurement activities in the case study have been delegated to 14 procurement
champions across the CareHelp organisation.
Discuss the likely benefits of this delegation for both the 14 individuals and the CareHelp
(25 marks)
supply chain.
Analysis of the Question:
Candidates were expected to discuss the likely benefits of this delegation for both the 14 procurement
champions and CareHelp supply chain.
Answers should include an explanation of the term delegation in the context of the case study.
Delegation may be described as the process through which superiors entrust to a subordinate or team part of
their authority to make decisions or take actions.
Delegation is a key process by which decision making in an organisation is devolved to:
Lower levels of the organisation giving front line employees autonomy to use discretion for
CareHelp. (However in other circumstances delegation may be upwards or sideways)
Local units of the organisation giving managers autonomy to respond flexibly.
Delegation is thus closely related to the concept of decentralisation, as evidenced in the case study by the 14
procurement champions.
The benefits of delegation for the individuals at CareHelp will include:
The development of individual employees and teams.
Enhanced capabilities of problem solving and decision making.
The development of wider capabilities and competences for the champions, which will also be of
benefit to the organisation.
Succession planning identifying and developing individuals with potential for promotion within the
CareHelp organisation structure.
Measurement of performance of new tasks in a low risk environment.
Empowerment of individuals in terms of developing their personal qualities and confidence.
Job enrichment which provides a planned and deliberate approach to greater responsibility, breadth
and challenge.
Job enlargement where the scope of a single role is extended and developed.
Job rotation delegation may enable individuals to undertake a range of different new activities.

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Potential benefits of delegation for the supply chain of CareHelp (users and suppliers) may include:
Quicker response to operational problems at CareHelp such as customer complaints and supplier poor
performance.
Reduced delays and downtime.
Quicker responses to changes in supplier and/or customer requirement as the decisions will be taken
closer to the interface with the external environment.
Improved relationship management between customers and suppliers within the supply chain at
CareHelp.
Better use of senior management time at CareHelp (Katrina) as routine decisions are delegated to
lower levels of the organisation.
Improved quality of decision making as the stakeholders of CareHelp are more closely involved at the
appropriate level.
There is a wide range of potential benefits to increase delegation as decentralisation of decision making
within CareHelp. All examples that are valid in relation to the case study will be accepted. Stronger
candidates will recognise that the supply chain operates both forward to customers/users and backwards to
suppliers.
Analysis of the Answer:
An excellent question to test the candidates practical knowledge of the benefits of delegation. However, as
with question 3, the key word was benefits. Many chose to also discuss the disadvantages and again wasted
valuable exam time. Stronger answers discussed the benefits for both the 14 procurement champions and
the supply chain and related this information to the case study. These answers were well contextualised and
were awarded appropriate marks. Weaker answers focused on the HOW of delegation with a number of
these answers also providing a description of an effective delegation process. The question asked for benefits
and not how it should be implemented. A number of candidates also missed out the likely benefits of
delegation to the supply chain. In this instance this would reduce the amount of marks that could be
awarded.
Exam Question Summary:
In the main this question was answered well with most candidates achieving more than a bare pass. Some
candidates needed to read the question carefully.
A reasonably straightforward question, however, some of the answers did not focus on providing the benefits
and therefore did not achieve a pass in this question. Again some candidates just listed the answers. These
answers were regarded as superficial with insufficient evidence to attract a pass mark in this question.

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